Latest · Trust accounting
How to open a property management trust account
Open a separate trust account, keep a ledger per property, and move your management fee to operating only after the rent is collected.
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Practical guides for independent property managers: rent, owner trust accounting, leases, maintenance and running a lean property management business.
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Owners
How to onboard a new property owner
Sign the management agreement, split deposits from reserves in the trust account, and send the first owner statement from those opening balances.
Leases
How to document a move-in inspection
Walk the unit on day one, note existing damage with photos, and have you and the tenant sign the checklist before you rely on the deposit.
Rent & payments
How to apply a partial rent payment
Apply a partial rent payment to the oldest charges first, receipt the amount you received, and leave the remaining balance open.
Rent & payments
How to send a rent reminder
Send the same written rent reminder to every lease before the due date, then a follow-up only if money is still open after the grace period.
Maintenance
How to handle a maintenance request
Write the request down, send the vendor a not-to-exceed amount, and post the invoice to the owner statement before you close the work order.
Leases
How to renew a lease
Offer the new rent and the new dates in writing, get the owner's number first, and change the recurring charge the day the renewal is signed.
Growing your business
How to calculate a property management fee
Use the base in the management agreement, round once, and move the fee from the owner's trust funds to your operating account.
Trust accounting
What to include on a monthly owner statement
Show rent collected, the management fee, vendor bills, reserves, and the amount paid to the owner. Keep security deposits off the rent line.
Rent & payments
How to set a late fee and a grace period
Put the fee and the grace period in the lease, post the fee once when it is earned, and leave the unpaid rent on the ledger beside it.
Leases
How to return a security deposit
Itemize lawful deductions, apply any open rent from the ledger, and return the rest by the state's deadline. California is 21 days. Texas is 30.
Leases
How much security deposit should you collect?
Collect the deposit the lease names, inside the local cap, and hold it apart from rent. California's general cap is one month's rent.
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